HAFA Program

Home Affordable Foreclosure Alternatives
(HAFA) Program

HAFA Program $3,000 Cash Back to Borrowers

Home Affordable Foreclosure Alternatives (HAFA) Program
$3,000 Cash Back to Borrowers

The HAFA program, which went into effect on April 5, 2010, was designed for homeowners who can no longer afford their mortgage and are ready to transition to more affordable housing. The program was updated On December 28, 2010. Fannie Mae and Freddie Mac have separate HAFA guidelines.

HAFA was established to help homeowners avoid a foreclosure by selling the home as a “short sale” or by transferring title to the lender through a process called a “deed-in-lieu of foreclosure.” In general, the HAFA Short Sale is more streamlined and HAFA offers a faster timeline than a traditional short sale. There are also financial incentives to the participating parties.

Benefits to Homeowners
  1. All secured debt is completely eliminated – no promissory notes or cash contribution from Seller are allowed.
  2. Seller closing costs, including real estate commissions, paid by Servicer.
  3. Up to $6,000 paid to junior lien holders.
  4. Borrowers will get $3,000 as relocation expense at close of escrow.


You may be eligible for HAFA if you meet all of the following criteria:

  • You live in the home or have lived there within the last 12 months.
  • You have a documented financial hardship.
  • You have not purchased a new house within the last 12 months.
  • Your first mortgage is less than $729,750.
  • You obtained your mortgage on or before January 1, 2009.
  • You must not have been convicted within the last 10 years of felony larceny, theft, fraud, forgery, money laundering or tax evasion in connection with a mortgage or real estate transaction




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